FX.co ★ Wave analysis of the USD / JPY currency pair. Weekly review

Analysis of wave counting:

Having stood almost all the past week in a narrow price range between the level of the 113th figure and 112.40, the pair USD / JPY was able to update the previously reached maximum only on Friday, after which it returned to the level of 112.60. The resulting wave pattern suggests that the currency pair somewhat complicated the wave structure of the rising trend section, formed after September 8, and is currently trying to complete the wave c, a, (C). If this is the case, then a fairly strong divergence of the MACD indicates the possibility of an early start of the downward correction or from the high of the last day of the previous week, or after testing the level of 114.00.

Targets for the downward wave option:

112.00 - 110.00

Targets for the upward wave option:

113.98 - 23.6% of Fibonacci

General conclusions and trading recommendations:

The pair USD / JPY continues to build the upward wave (C). Thus, the increase in quotations can continue in the wave a, in the future (C) with targets located near the calculated mark of 113.98, which corresponds to 23.6% of Fibonacci. Now, it is also possible to withdraw quotes from local maximum within the corrective wave b with targets located about 112 figures and below. The MACD divergence warns about the tool's readiness to decrease.